Neumora Therapeutics, Inc. (NMRA) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001885522

P/B 2.54

P/E -1.42

P/S 0.00

Market Cap 335.96 Mn

ROIC (Qtr) -138.33

Div Yield % 0.00

Rev 1y % (Qtr) 0.00

Total Debt (Qtr) 20.09 Mn

Debt/Equity (Qtr) 0.15

About

Neumora Therapeutics, Inc., with ticker symbol NMRA, is a clinical-stage biopharmaceutical company operating in the neuroscience sector. The company is dedicated to addressing the global brain disease crisis by developing innovative treatments for a wide range of neuropsychiatric disorders and neurodegenerative diseases. Neumora's primary business activities involve the research, development, and commercialization of novel neuroscience therapeutics. The company operates in the United States and leverages its proprietary data science and translational...

Neumora Therapeutics, Inc., with ticker symbol NMRA, is a clinical-stage biopharmaceutical company operating in the neuroscience sector. The company is dedicated to addressing the global brain disease crisis by developing innovative treatments for a wide range of neuropsychiatric disorders and neurodegenerative diseases.

Neumora's primary business activities involve the research, development, and commercialization of novel neuroscience therapeutics. The company operates in the United States and leverages its proprietary data science and translational neuroscience tools, known as the Precision Toolbox, to enhance its development efforts. The Precision Toolbox consists of approximately 1 petabyte of longitudinal, multimodal patient data, including genetic, imaging, EEG, digital, and clinical data across various neuropsychiatric disorders and neurodegenerative diseases.

Neumora generates revenue through the development of various product candidates, each targeting novel mechanisms of action for specific brain diseases. Its most advanced product candidate, navacaprant (NMRA-140), is a novel once-daily oral kappa opioid receptor (KOR) antagonist for the treatment of major depressive disorder (MDD). Navacaprant has shown positive results in a Phase 2 clinical trial, demonstrating statistically significant treatment differences compared to placebo in depression and anhedonia in patients with moderate to severe MDD.

Another prominent product candidate in Neumora's pipeline is NMRA-266, a positive allosteric modulator of the M4 muscarinic receptor (M4R) being developed for the treatment of schizophrenia. The company has initiated a Phase 1 single ascending dose/multiple ascending dose (SAD/MAD) study in healthy adult participants and plans to initiate a Phase 1b study with NMRA-266 in adults with schizophrenia in the second half of 2024.

Neumora's competitive advantage lies in its focus on novel mechanisms of action and its Precision Toolbox approach, which has the potential to deliver improved treatment outcomes and quality of life for patients suffering from neuropsychiatric disorders and neurodegenerative diseases. The company's intellectual property estate, including composition of matter patents for each program, provides sufficient runway to enable clinical trials in multiple indications.

In terms of customers, Neumora primarily serves patients suffering from neuropsychiatric disorders and neurodegenerative diseases, as well as healthcare providers and research institutions.

The Precision Toolbox Patent Portfolio includes several patent families, with seven issued U.S. patents and additional pending U.S. and foreign patent applications. These patents are expected to expire between 2038 and 2044, excluding any patent term adjustment. Neumora also relies on trade secrets, know-how, confidentiality agreements, and continuing technological innovation to develop and maintain its competitive position.

Neumora's biomarker patent portfolio consists of six patent applications relating to unimodal and multimodal biomarkers that identify patients who respond to specific drugs. These biomarker patents are process patents for identifying and diagnosing patients with selected biomarkers and methods of treating patients with those biomarkers with neural drugs.

In addition to its patent and trademark protections, Neumora has entered into research collaboration agreements with Amgen and Vanderbilt University to discover drug targets, biomarkers, and other insights associated with CNS diseases and small molecule positive allosteric modulators of the muscarinic acetylcholine receptor subtype 4 (M4), respectively.

Stock Price Chart

Analysis

Pros

Healthy cash reserves of 129.07M provide 504.18x coverage of short-term debt 256000, demonstrating strong liquidity position and minimal refinancing risk.
Robust free cash flow of (208.67M) exceeds capital expenditure of (155000) by 1346.26x, indicating strong organic growth funding capability.
Strong tangible asset base of 177.83M provides 8.85x coverage of total debt 20.09M, indicating robust asset backing and low credit risk.
Short-term investments of 42.45M provide solid 1.70x coverage of other current liabilities 25.04M, indicating strong liquidity.
Tangible assets of 177.83M provide robust 7.10x coverage of other current liabilities 25.04M, indicating strong asset backing.

Cons

Operating cash flow of (208.82M) barely covers its investment activities of 27.07M, with a coverage ratio of -7.71, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of 27.07M provide weak support for R&D spending of 177.31M, which is 0.15x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
The company's operating cash flow of (208.82M) shows concerning coverage of stock compensation expenses of 32.37M, with a -6.45 ratio indicating potential earnings quality issues.
Operating cash flow of (208.82M) provides minimal -1606.35x coverage of tax expenses of 130000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
Operating earnings of (235.42M) show weak coverage of depreciation charges of 3.04M, with a -77.31 ratio indicating high capital intensity and potential reinvestment needs.

Peer Comparison

Companies in the Biotechnology

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SMMT	Summit Therapeutics Inc.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	1.30	12.31
EV to Cash from Ops.	-1.11	23.25
EV to Debt	11.52	738.44
EV to EBIT	-0.98	-9.16
EV to EBITDA	-0.95	6.95
EV to Free Cash Flow [EV/FCF]	-1.11	21.90
EV to Market Cap	0.69	65.67
EV to Revenue	0.00	227.32
Price to Book Value [P/B]	2.54	22.34
Price to Earnings [P/E]	-1.42	-11.77

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	-315.15	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	452.27	-27.13
Cash and Equivalents Growth (1y) %	-53.39	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	19.80	-46.93
EBITDA Growth (1y) %	21.90	-1.68
EBIT Growth (1y) %	19.72	-56.45
EBT Growth (1y) %	19.47	-12.70
EPS Growth (1y) %	-22.50	-28.31
FCF Growth (1y) %	-13.36	-31.90
Gross Profit Growth (1y) %	0.00	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	4.99	3.85
Current Ratio	6.85	7.27
Debt to Equity Ratio	0.15	0.40
Interest Cover Ratio	-315.15	841.00
Times Interest Earned	-315.15	841.00

Profitability

Metric	Value	Industry	Percentile
EBITDA Margin %	0.00	-18,234.31
EBIT Margin %	0.00	-18,580.80
EBT Margin %	0.00	-19,488.74
Gross Margin %	0.00	-7.59
Net Profit Margin %	0.00	-19,439.22

Neumora Therapeutics, Inc. (NASDAQ: NMRA)